WESTERN UNION CO (WU) Stock Fundamental Analysis
NYSE:WU - New York Stock Exchange, Inc. - US9598021098 - Common Stock - Currency: USD
WU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. WU scores excellent on profitability, but there are some minor concerns on its financial health. WU is valued quite cheap, but it does not seem to be growing. WU also has an excellent dividend rating. With these ratings, WU could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
WU had positive earnings in the past year.
In the past year WU had a positive cash flow from operations.
Each year in the past 5 years WU has been profitable.
In the past 5 years WU always reported a positive cash flow from operatings.
1.2 Ratios
WU's Return On Assets of 11.16% is amongst the best of the industry. WU outperforms 92.08% of its industry peers.
WU's Return On Equity of 96.42% is amongst the best of the industry. WU outperforms 99.01% of its industry peers.
WU's Return On Invested Capital of 8.37% is amongst the best of the industry. WU outperforms 81.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WU is in line with the industry average of 7.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 96.42% | ||
| ROIC | 8.37% |
ROA(3y)9.84%
ROA(5y)9.3%
ROE(3y)139.23%
ROE(5y)208.46%
ROIC(3y)9.58%
ROIC(5y)10.5%
1.3 Margins
With a decent Profit Margin value of 22.19%, WU is doing good in the industry, outperforming 77.23% of the companies in the same industry.
In the last couple of years the Profit Margin of WU has grown nicely.
The Operating Margin of WU (18.22%) is better than 64.36% of its industry peers.
WU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 38.23%, WU is in line with its industry, outperforming 56.44% of the companies in the same industry.
WU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.22% | ||
| PM (TTM) | 22.19% | ||
| GM | 38.23% |
OM growth 3Y-8.01%
OM growth 5Y2.8%
PM growth 3Y11.78%
PM growth 5Y2.1%
GM growth 3Y-4.16%
GM growth 5Y-1.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WU is destroying value.
Compared to 1 year ago, WU has less shares outstanding
WU has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WU has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that WU is in the distress zone and has some risk of bankruptcy.
WU has a better Altman-Z score (1.22) than 64.36% of its industry peers.
The Debt to FCF ratio of WU is 10.67, which is on the high side as it means it would take WU, 10.67 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WU (10.67) is comparable to the rest of the industry.
WU has a Debt/Equity ratio of 3.04. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.04, WU is not doing good in the industry: 77.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.04 | ||
| Debt/FCF | 10.67 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.76
WACC10.96%
2.3 Liquidity
A Current Ratio of 2.17 indicates that WU has no problem at all paying its short term obligations.
The Current ratio of WU (2.17) is better than 76.24% of its industry peers.
WU has a Quick Ratio of 2.17. This indicates that WU is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.17, WU is doing good in the industry, outperforming 77.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.57% over the past year.
Measured over the past 5 years, WU shows a small growth in Earnings Per Share. The EPS has been growing by 0.23% on average per year.
Looking at the last year, WU shows a decrease in Revenue. The Revenue has decreased by -3.38% in the last year.
The Revenue has been decreasing by -4.47% on average over the past years.
EPS 1Y (TTM)0.57%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%8.11%
Revenue 1Y (TTM)-3.38%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%0.56%
3.2 Future
Based on estimates for the next years, WU will show a small growth in Earnings Per Share. The EPS will grow by 3.24% on average per year.
The Revenue is expected to grow by 1.73% on average over the next years.
EPS Next Y6.36%
EPS Next 2Y6.08%
EPS Next 3Y3.06%
EPS Next 5Y3.24%
Revenue Next Year0.53%
Revenue Next 2Y1.21%
Revenue Next 3Y1.78%
Revenue Next 5Y1.73%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.05, the valuation of WU can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of WU indicates a rather cheap valuation: WU is cheaper than 92.08% of the companies listed in the same industry.
WU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.09.
A Price/Forward Earnings ratio of 5.68 indicates a rather cheap valuation of WU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WU indicates a rather cheap valuation: WU is cheaper than 92.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.77, WU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 5.68 |
4.2 Price Multiples
93.07% of the companies in the same industry are more expensive than WU, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WU is valued a bit cheaper than the industry average as 76.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.96 | ||
| EV/EBITDA | 5.34 |
4.3 Compensation for Growth
WU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.95
PEG (5Y)26.27
EPS Next 2Y6.08%
EPS Next 3Y3.06%
5. Dividend
5.1 Amount
WU has a Yearly Dividend Yield of 8.86%, which is a nice return.
Compared to an average industry Dividend Yield of 3.78, WU pays a better dividend. On top of this WU pays more dividend than 97.03% of the companies listed in the same industry.
WU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.86% |
5.2 History
The dividend of WU has a limited annual growth rate of 3.31%.
WU has been paying a dividend for at least 10 years, so it has a reliable track record.
WU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.31%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
34.41% of the earnings are spent on dividend by WU. This is a low number and sustainable payout ratio.
The dividend of WU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.41%
EPS Next 2Y6.08%
EPS Next 3Y3.06%
WESTERN UNION CO
NYSE:WU (2/10/2025, 12:19:10 PM)
10.58
-0.03 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners94.66%
Inst Owner Change-17.58%
Ins Owners0.22%
Ins Owner Change0.18%
Market Cap3.57B
Analysts48.15
Price Target12.4 (17.2%)
Short Float %6.57%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.86% |
Yearly Dividend0.93
Dividend Growth(5Y)3.31%
DP34.41%
Div Incr Years0
Div Non Decr Years17
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.47%
Min EPS beat(2)-6.98%
Max EPS beat(2)2.03%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-6.98%
Max EPS beat(4)7.01%
EPS beat(8)5
Avg EPS beat(8)6.71%
EPS beat(12)7
Avg EPS beat(12)6.26%
EPS beat(16)9
Avg EPS beat(16)5.94%
Revenue beat(2)1
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-2.26%
Max Revenue beat(2)0.21%
Revenue beat(4)2
Avg Revenue beat(4)-0.88%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.88%
Revenue beat(8)5
Avg Revenue beat(8)1%
Revenue beat(12)5
Avg Revenue beat(12)-0.19%
Revenue beat(16)5
Avg Revenue beat(16)-0.77%
PT rev (1m)-2.77%
PT rev (3m)-5.39%
EPS NQ rev (1m)-1.02%
EPS NQ rev (3m)-2.61%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 5.68 | ||
| P/S | 0.85 | ||
| P/FCF | 12.96 | ||
| P/OCF | 8.8 | ||
| P/B | 3.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.34 |
EPS(TTM)1.75
EY16.54%
EPS(NY)1.86
Fwd EY17.59%
FCF(TTM)0.82
FCFY7.71%
OCF(TTM)1.2
OCFY11.37%
SpS12.46
BVpS2.87
TBVpS-4.16
PEG (NY)0.95
PEG (5Y)26.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 96.42% | ||
| ROCE | 9.98% | ||
| ROIC | 8.37% | ||
| ROICexc | 10.36% | ||
| ROICexgc | N/A | ||
| OM | 18.22% | ||
| PM (TTM) | 22.19% | ||
| GM | 38.23% | ||
| FCFM | 6.55% |
ROA(3y)9.84%
ROA(5y)9.3%
ROE(3y)139.23%
ROE(5y)208.46%
ROIC(3y)9.58%
ROIC(5y)10.5%
ROICexc(3y)11.8%
ROICexc(5y)12.83%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.75%
ROCE(5y)12.86%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-14.15%
ROICexc growth 5Y-4.37%
OM growth 3Y-8.01%
OM growth 5Y2.8%
PM growth 3Y11.78%
PM growth 5Y2.1%
GM growth 3Y-4.16%
GM growth 5Y-1.6%
F-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.04 | ||
| Debt/FCF | 10.67 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 72.92% | ||
| Cap/Sales | 3.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 42.94% | ||
| Profit Quality | 29.51% | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z | 1.22 |
F-Score5
WACC10.96%
ROIC/WACC0.76
Cap/Depr(3y)69.25%
Cap/Depr(5y)59.61%
Cap/Sales(3y)2.9%
Cap/Sales(5y)2.53%
Profit Quality(3y)61.9%
Profit Quality(5y)81.65%
High Growth Momentum
Growth
EPS 1Y (TTM)0.57%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%8.11%
EPS Next Y6.36%
EPS Next 2Y6.08%
EPS Next 3Y3.06%
EPS Next 5Y3.24%
Revenue 1Y (TTM)-3.38%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%0.56%
Revenue Next Year0.53%
Revenue Next 2Y1.21%
Revenue Next 3Y1.78%
Revenue Next 5Y1.73%
EBIT growth 1Y-6.15%
EBIT growth 3Y-13.54%
EBIT growth 5Y-1.79%
EBIT Next Year27.63%
EBIT Next 3Y10.81%
EBIT Next 5Y7.38%
FCF growth 1Y-58.95%
FCF growth 3Y-33.52%
FCF growth 5Y-19.85%
OCF growth 1Y-48.12%
OCF growth 3Y-27.02%
OCF growth 5Y-14.98%